VTC.L Regulatory News (VTC)

19 Jul 2006 07:01

The Vitec Group PLC19 July 2006 19 July 2006 The Vitec Group plc Period end trading update The Board of The Vitec Group plc ("Vitec") announces the following period-endupdate on trading for the six months to 30 June 2006. Current trading Trading for the first six months of 2006 has been very strong, with salesapproximately 19% higher than in the first half of 2005 (14% higher beforeacquisitions and favourable foreign exchange) and profit before significantitems and tax considerably ahead. The Board continues to be optimistic aboutthe prospects for the year. Divisional performance In Photographic we have seen continued increased demand, particularly in the US.Sales growth for our lighting supports has also been very positive, and camerasupport sales continue to be underpinned by the strong demand for digital SLRcameras. In Broadcast Systems, Camera Support's sales have risen as our customers haveincreased their capital spending, led by a further increase in sales of studiopedestals. Broadcasters' spending on production equipment has been stimulatedby the adoption of High Definition programming. Revenue growth in ourCommunications and Portable power businesses has been less marked. In Broadcast Services, US rental demand was in line with expectations. Webenefited from the two major sporting events, with an unexpectedly strong TurinWinter Olympics and a modest contribution from the football World Cup inGermany. There are no such major events taking place in the second half of2006. - Ends - Enquiries: The Vitec Group plcGareth Rhys Williams Telephone: 020 8939 4650 Financial DynamicsSusanne Walker / Richard Mountain Telephone: 020 7269 7121 Notes 1. Vitec will host a telephone conference for analysts at 8.15am today. Please contact Susanne Walker at Financial Dynamics for dial-in details. 2. The interim results are expected to be released on 4 September 2006, in accordance with International Financial Reporting Standards. 3. Whilst Vitec has significant production and sourcing in US dollars and has hedging arrangements in place, movements in the $/£ and, particularly, $/• rates can have a significant impact on reported results. The US dollar was stronger in the first half of 2006 compared to the first half of 2005, which generated a positive £0.3m effect in the first half of 2006, after hedging. If the dollar stays at current levels, we estimate there will be an adverse foreign exchange effect of some £0.5m in the second half of 2006 compared to the same period in 2005. 4. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Vitec's current expectations concerning future events and actual results may differ materially from current expectations or historical results. The Vitec Group plc supplies a wide range of equipment and services to thebroadcasting, entertainment and photographic industries. Its products aredistributed in nearly 100 countries, either through dealerships or direct to theend user or corporate customer. The Vitec Group is a major force in its chosenspecialised fields. More information can be found at: http://www.vitecgroup.com. This information is provided by RNS The company news service from the London Stock Exchange